If you see fewer auto repair shops in your town then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will be the auto repair and service market has been shrinking in the last 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty relating to this the independent will get little chance to handle that car for site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers generally competed for skilled labor and already have become significantly aggressive. With fewer folks entering significantly repair profession and opting instead for careers like health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents to utilize and retain these highly skilled employees. A great automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician actually make $100,000 one year with benefits while a self-employed shop owner would must gross within the $1,000,000 twelve months to make that and still have to reimburse their own benefits and social safe practices.
Because the hands down economic realities many independent owners are at this moment closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is intended and an area needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding within the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical information is proprietary everybody is making independents claim the information should be available to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777